MoneyGram Hit With $250K Fine for Consumer Rip-Offs

NEW YORK – MoneyGram International, Inc. and MoneyGram Payment Systems, Inc. (MoneyGram) are $250,000 poorer today after New York Attorney General Letitia James slammed the international money transfer giant for years of consumer abuse. The AG’s office alleges MoneyGram routinely failed to deliver funds on time, stonewalled legitimate refund requests, and generally treated customers with contempt, putting hard-earned money at risk.

The crackdown stems from a joint investigation launched in April 2022 with the Consumer Financial Protection Bureau (CFPB). While the CFPB later bowed out of the case, Attorney General James pressed forward, securing a settlement that forces MoneyGram to not only pay the $250,000 penalty but also adhere to basic consumer protection laws. “New Yorkers who want to send money to their loved ones abroad must be able to trust that the companies handling their hard-earned money operate with honesty,” James stated. “MoneyGram broke the law for years, sometimes ignoring its customers about the fate of their money.”

MoneyGram, a non-bank financial services behemoth, facilitates remittances – money sent from the U.S. to over 200 countries and territories – through a network of 440,000 agent locations worldwide and digital platforms. Hundreds of thousands of New Yorkers rely on MoneyGram for millions of transactions annually. The AG’s office and CFPB initially alleged that MoneyGram systematically violated both state and federal laws designed to protect those very customers.

The suit detailed a pattern of behavior where MoneyGram failed to make funds available to recipients promptly, dragged its feet on resolving errors, and provided inaccurate information to consumers. The settlement ensures MoneyGram can’t dodge accountability despite the CFPB’s withdrawal. The company is now legally obligated to transfer funds and process refunds in a timely manner, guarantee accurate information, and investigate errors without delay. They are also barred from falsely claiming they aren’t responsible for errors or providing misleading information to senders.

This isn’t just about the money, though. It’s about accountability. MoneyGram preyed on those who often have limited options for sending money internationally, and Attorney General James made sure they paid a price. The settlement dictates that MoneyGram must comply with consumer protection laws. Beyond the financial penalty, the company is now under the microscope, forced to operate with transparency and respect for its customers.

The case was handled by Assistant Attorneys General Laura C. Dismore and Christopher McCall, and former Deputy Attorney General Jason Meizlish, of the Office of Consumer Fraud. The Office of Consumer Fraud is led by Chief of Bureau Jane Azia and Deputy Chief of Bureau Laura Levine, and is part of the Division of Economic Justice, supervised by Principal Deputy Attorney General Chris D’Angelo and First Deputy Attorney General Jennifer Levy.

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RELATED: MoneyGram Hit With $250K Fine for Ripping Off Customers